Juhl Wind, Inc.
(
JUHL
) has entered into a joint venture ("JV") with 8030 Companies
based in Colorado to acquire its existing wind farms and
additional clean energy assets located in the U.S. and Canada.
Post contract, this JV will function under the name of Juhl Wind.
Per the contract, Juhl Wind will buy 260 megawatts ("MWs") of
older wind farms over three years through this joint venture. The
company may purchase projects, worth approximately 60 MWs, in
2013 and 100 MWs projects in two subsequent years.
The joint venture has already completed its initial discussions
with the owners of the existing wind farms in the upper Midwest.
Further, it is expanding its footprints across North America.
The joint agreement targets those projects, which are in line
with Juhl Wind's core competencies in the market-wind farms under
the generation capacity of less than 100 MWs. The company plans
to acquire the decade old wind farms, where equipments are
required to be replaced or improved. Therefore, the company will
benefit from a production tax credit of 2.2 cents per
kilowatt-hour after the purchase transaction is completed.
It is evident from Juhl Wind's last few transactions that it
follows steady inorganic growth strategy. In May this year and
December 2011, the company acquired Midwest-based Power Engineers
Collaborative, LLC ("PEC") and Chandler, Minnesota-based Valley
View Wind Farm, respectively. These acquisitions primarily
enhanced the company's ability to expand its coverage in full
array of clean energy divisions like natural gas, biomass and
waste-to-energy services.
The joint venture is expected to boost Juhl Wind's market
position. The company is well poised to become the nation's
leading renewable energy provider in terms of focus on Community
Based Wind Power development, ownership and management throughout
the U.S. and Canada.
In addition, we believe this entity will work jointly on fuel
innovation, increase efficiency, and provide clean energy and
better services to its customers.
Joint ventures and merger-acquisitions in utilities sector are
very common in the current scenario. In March this year,
Exelon Corporation
(
EXC
) merged with Constellation Energy ("CEG") with a deal value of
$7.9 billion.
Pipestone, Minnesota-based Juhl Wind, Inc. is a leading renewable
energy provider in the U.S. and Canada. With a market
capitalization of $12.50 million, the company has 20 full time
employees. Juhl Wind currently has short-term Zacks #3 Rank (Hold
rating).
EXELON CORP (EXC): Free Stock Analysis Report
(JUHL): ETF Research Reports
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